Mixed Q3 results for Foundation Building Materials
Foundation Building Materials (FBM), the specialty building products distributor of wallboard, suspended ceilings, and metal framing, reported third quarter 2018 net sales of $542.3 million, nearly a 16% increase from net sales of $467.9 million for the third quarter of 2017.
Net sales from base business branches contributed $52.3 million, or 12.5%, of the increase which was driven by strong commercial activity, price increases and product expansion into new geographic markets. Net sales from acquired branches and existing branches that were strategically combined contributed $22.1 million of the increase.
But the Tustin, Calif.-based distributor posted a net loss of $37.6 million for the quarter, compared to net income of $0.1 million for the three months ended Sept. 30, 2017.
On Sept. 26, FBM entered into an agreement to sell its mechanical insulation business for $122.5 million.
Earlier this month FBM completed its acquisition of Agan Drywall Supply, adding 3 additional branches serving the South Dakota and Iowa markets. For the fourth quarter of 2018, Agan is expected to contribute $5 million to $7 million to net sales.
Through Nov. 1, FBM has completed 4 acquisitions totaling 16 branches with combined annualized net sales in excess of $130 million. The Company expects to continue to supplement organic growth with strategic acquisitions, FBM said.
As of Sept. 30, 2018, the company has opened four specialty building products greenfield branches and expects to open up to 2 more branches by the end of 2018, for a total of 5 to 6 branches.
FBM said it expects 2018 full year sales of $2 billion to $2.06 billion for 2018 and sales of $2.1 billion to $2.25 billion in 2019.
As of its latest earnings report, FBM said it operates more than 170 branches in the United States and Canada.
Net sales from base business branches contributed $52.3 million, or 12.5%, of the increase which was driven by strong commercial activity, price increases and product expansion into new geographic markets. Net sales from acquired branches and existing branches that were strategically combined contributed $22.1 million of the increase.
But the Tustin, Calif.-based distributor posted a net loss of $37.6 million for the quarter, compared to net income of $0.1 million for the three months ended Sept. 30, 2017.
On Sept. 26, FBM entered into an agreement to sell its mechanical insulation business for $122.5 million.
Earlier this month FBM completed its acquisition of Agan Drywall Supply, adding 3 additional branches serving the South Dakota and Iowa markets. For the fourth quarter of 2018, Agan is expected to contribute $5 million to $7 million to net sales.
Through Nov. 1, FBM has completed 4 acquisitions totaling 16 branches with combined annualized net sales in excess of $130 million. The Company expects to continue to supplement organic growth with strategic acquisitions, FBM said.
As of Sept. 30, 2018, the company has opened four specialty building products greenfield branches and expects to open up to 2 more branches by the end of 2018, for a total of 5 to 6 branches.
FBM said it expects 2018 full year sales of $2 billion to $2.06 billion for 2018 and sales of $2.1 billion to $2.25 billion in 2019.
As of its latest earnings report, FBM said it operates more than 170 branches in the United States and Canada.